7-Eleven Bringing Japanese Snacks and Practices to the U.S.

Despite offering a variety of treats like the Buffalo chicken roller we can’t get enough of or the infamous Big Gulp, 7-Eleven’s revenue has reportedly been on the decline in America. Which leaves  only one obvious solution: Bring in the Japanese snacks.

That’s right, Seven and I Holdings, the Japanese company that essentially bought out 7-Eleven after its second bankruptcy in 1990, has seen the cultish rise of 7-Eleven’s popularity in Japan and plans to implement similar business practices and product offerings in their U.S. stores. Seven and I Holdings has set out to add higher quality food options to U.S. locations, including rice balls, ramen, milk tea, and other treats previously absent from U.S. locations.

Why is 7-Eleven failing? Why Japanese snacks?

Seven and I Holdings has reported a drop in first-quarter net profit for 7-Eleven as a result of U.S. locations and their business deteriorating “partly due to higher costs of products and labor in the U.S.” Another speculated reason for this decline in convenience store business in general has been the decrease in cigarette sales and the rise in popularity of electric vehicles. With fewer people buying cigarettes and gas—these being typical initial reasons for people to stop at 7-Elevens and convenience stores—the current offerings of underwhelming fast-grab food does not seem to be enough on its own to bring people into convenience stores. However, this reworking of American 7-Elevens using the Japanese convenience store model may be the solution.

Unlike in the United States, where 7-Elevens tend to be a utilitarian destination, in Japan 7-Elevens are happily frequented by everyone, with international travelers often naming the convenience store the first place they’d return to if they found themselves back in Japan. In Japan, 7-Elevens not only put the “convenience” in convenience store by having locations practically wherever you are, but also by bringing the appeal of high-quality food that is good enough to eat for dinner. Instead of the taquitos and hot dogs that spin endlessly on a hot roller in U.S. stores, Japanese 7-Elevens offers ramen, sushi, onigiri, karaage, egg sandwiches, steamed buns, and many more fresh items. It’s worth noting that the quality of these products also may come from the freshness of the products due to differing distribution practices—Japanese stores get multiple shipments in every day, unlike U.S. stores that only receive new items twice a week. On top of quality food, it’s quality food that is cheap. You can get everything from sandwiches to bento boxes, and items often cost between 150-400 YPY (between $0.95 and $2.50 in U.S. dollars). Easily accessible. Tasty, high-quality food. Low prices. What more could you want 24 hours a day, seven days a week?

If the decline in business at U.S. 7-Eleven locations is truly because of their food just not being enough to attract customers alongside the fall of cigarette and fuel sales, then adopting Japanese practices of better quality food selections should, in theory, be enough to counter this drop in revenue. Will Americans be ready to jump on the rebranding train once it comes? Only time will tell!